The inflationary stage boomed the [real estate market especially by rea~ son of conditions which distinguished themselves from former times. in. that "numerous Chinese banks, fast] assuming pre-eminence in the banking world here, had a policy in contrast to that of foreign banks. Where-jag, the latter always confined themselves mainly to trading and fluid assets, the Chinese banks, being on ative soil, with the traditional mentality of reposing restful reliance! Jon "land, employed their funds in this direction. Further, as trade was not brisk, such form of investment was accentuated and operations in real estate were too-amply financed, the outcome of which action again sent prices rocketing sky-high, until they "were quite incommensurate with earning capacity.
This "prosperity" was built on an aureole of optimism as remotely from the mean of balance as was the darkness of the preceding pessimism.
Tu the fall of 1991 two important events occurred which were sufficient to shake the falsity out of the high-gold standard, Feasonably cheap, and thus affecting the credit structure of Shanghai. The Jother was the Japanese reorientation of their China policy which found violent articulation "in the Man-Jchurian imbroglio and the subsequent war at Chapel, Shanghai, where a Dillion dollars base of wealth was, unfortunately, destroyed.
On top of all this came the inevitable effects of the world depression fon this city, expressing itself in the {all in trade, og demonstrated th Value of the Foreign Trade of China, im io" oat" Tosa Net imports 2042 2204 164 Exports 1304 1416 705
'On October 15, 1984, the Chinese Government imposed, as a defensive measure against the deflationary effects of the rise in silver, a silver' export tax, 10 per cent. less 2% per cent. minting charges, "plus equaliza~ tion charge equivalent to the deficit fancy, if any, existing between the theoretical parity of the price of silver in London and a rate of exchange offleally fixed by the Central Bank of China at Shanghai, after making due allowance for the payment of export duty'
Text read from the printed page and cleaned; old type leaves the occasional error.